Nvidia's share price has been volatile since last month, amid some concerns about future demand for AI chips and the speed at which artificial intelligence will be widely adopted. The stock has more than doubled this year as the company posted high-double-digit net profit growth in the first two quarters of this year, but its shares fell 13 percent over three trading days last month. Before bouncing back. NVDA 1Y line Major cloud computing firms, such as Microsoft, Amazon and Google, have bought billions of dollars worth of AI chips from Nvidia over the past two years. Investors now want to know whether these big tech companies will be able to make a return on their investment — a precursor to more spending on AI chips. “There are still questions about demand. Where is the profit? [companies] Spent all this money? How will they continue to do so? How will it accelerate in the coming years?” Rajshanth, managing director of Jennison Associates, one of Nvidia's 10 largest shareholders, said on CNBC's “Street Signs Europe” on Monday. However, history According to Capital Economics, for example, the railways first introduced in Britain take longer than expected to have an impact, however, in the technologies invented later. “The gap has narrowed,” said Neil Shearing, chief economist at Capital Economics, in a July 1 note to clients. Try to implement.” This was true. During the 'railway mania' of the late 19th century, and more recently during the dot-com boom at the end of the last century.” However, “tentative” signs are beginning to emerge that spending on AI chips could spur broader investment. Economy, said Capital Economics. Economists at the consultancy believe that the improvement in the US economy over the past two quarters can be partly attributed to “investment in software rather than hardware”. Yet they warn that much of the productivity gains won't be felt until the end of the decade. “We continue to believe that productivity gains from AI will be substantial … but that boost will not come until the second half of this decade,” Scheering added. CGI Inc. For an indication of how fast AI technologies are being adopted, Scotiabank highlighted CGI, a Canadian multinational IT firm that helps companies introduce AI into their business models and operations. Is. Shares of CGI are traded in the United States and Canada. Last year, CGI revealed plans to invest $1 billion over three years to expand its AI capabilities. But Scotiabank analyst Divya Goyal highlighted “slower-than-expected technology adoption” among its customers. Goyal said many businesses are still in the “discovery phase” of the AI trend, which involves developing proof-of-concept applications, while waiting for other AI software to reach maturity before implementing it. are doing According to the analyst, many companies are looking to transition to a viable AI-powered service in the next 6 to 24 months. GIB 5Y line “According to the CGI team, while ~80% of clients are currently looking for [generative] AI, less than 10% are in the implementation phase and currently limited dollars are being allocated to such general AI deployments.” The Scotiabank analyst believes that as large companies begin AI spending “We believe CGI is well-positioned to meet the growing demand for AI engagements among our global clients,” said CGI. It expects Toronoto's share price to rise 17% from its current price of C$136.55 ($99.62) for the listed stock, and $99 for the New York-listed stock.